Fight for the future battle of mobile phone screen sapphire

Abstract sapphire and Gorilla Glass screen phones are considered to be contested, which means not only increase revenue, high-margin, high frequency of consumption brought about by consumer stickiness, but a matter of the future of sapphire and Gorilla Glass And a lot of interest games. Behind this game, blue...
Both sapphire and gorilla glass believe that mobile phone screens are a battleground for the military. It not only means increased revenue, high gross profit, high-frequency consumption, but also the future of sapphire and gorilla glass. A lot of interest games.
Behind this game, sapphire companies, mobile phone glass manufacturers, and mobile phone companies have been involved. Although the "screen" battle has not been fully launched, there are small-scale "regional conflicts", although mobile glass companies can still firmly control The battle, but in the sporadic battlefield has shown a defensive.
In the last one or two years, Dong Hui (a pseudonym), the director of a famous domestic sapphire enterprise consumer electronics division, frequently traveled to major brand mobile phone companies to discuss the application of sapphire in the mobile phone field. In addition to cameras and HOME buttons that have already begun to be used on a large scale, the use of sapphire on mobile phone screens has become the focus of Dong Hui.
This round-trip exchange discussion, Dong Hui has not remembered how many times, in his memory, the major mobile phone manufacturers from supply chain management to technology development, design staff, he has met many friends.
Although in the past one or two years, Dong Hui’s sapphire company has nearly doubled sales and profits in the fields of watches, mobile phones, smart wear, etc., he still does not dare to slack off. "In the past two years, there are still many sapphire companies expanding production, and consumer electronics, mainly mobile phones and other fields, will definitely be the market that these sapphire companies should focus on." Dong Hui refers to a new capacity of sapphire companies on laptops. The release chart tells the new material online that the sapphire's main battlefield LED substrate market has fallen by 20% in 2015, and the pressure is quite high.
The competition for mobile phone screens has become the next "main battlefield" for sapphire companies. Who can win this game on the screen of the mobile phone, it is not known.

Sapphire's past and present
Time dialed back to September 2014, the domestic mobile phone brand vivo launched a sapphire glass screen mobile phone vivo X5L exclusive version, compared with the normal version of vivo X5, equipped with a sapphire screen vivo X5L wear resistance on the screen It has a better performance and completely eliminates the trouble of filming.
This is the first time that a domestic mainstream mobile phone is used in a sapphire screen application.
This also indicates that sapphire will start a new battlefield after being applied as a large-scale application of LED substrate materials, and this battlefield is a new business opportunity that is more space than the LED lighting market.
Between 2009 and 2010, the LED concept has attracted countless capital competitions. Statistics show that in 2010, China's LED industry contracted investment totaled 217.885 billion yuan, of which only 2 billion sapphire substrates reached 22.7 billion yuan.
In 2010, domestic chips began the first round of investment boom, which caused the market demand for sapphire substrates to soar. The price of 2-inch film once soared to 30 US dollars, and the profit margin was at a relatively high level.
Under the enthusiasm of investing in sapphire, domestic sapphire manufacturers have established a number of sapphire projects under the enthusiasm of investing in sapphire. By the time the capacity of these projects was released in 2012, the downstream application side of LEDs was in a dilemma of weak growth. As a result, many chip companies that had been established in the past failed halfway, and the capacity utilization rate of the chip factories that had been put into production began to be low. At this point, sapphire fell into a predicament of overcapacity, and prices plummeted to $5 below production costs.
Until 2013, the proportion of LED lighting market share was still small, which also led to the embarrassing situation of LED materials including sapphire.
The turnaround occurred in the second half of 2013, when its global LED lighting entered the fast lane, maintaining an average annual growth rate of more than 30%.
Statistics show that in 2014, the total output value of China's LED industry reached 344.5 billion yuan, a year-on-year increase of 31%. Among them, the output value of LED upstream epitaxial chips, midstream packaging and downstream applications were 12 billion yuan, 56.8 billion yuan and 275.7 billion yuan respectively, up 43%, 20% and 32% respectively.
With the continuous popularization of LED applications, especially the explosion of the LED lighting market, the rapid development of the LED industry has been driven. The sapphire substrate, the most important raw material for LED chips, has also ushered in a golden period of demand. Some research institutes expect the demand for sapphire ingots in the global LED industry to reach 98.73 million mm in 2015, a year-on-year increase of 12%. It is estimated that the demand for the first quarter of 2016 will be approximately 24,803,300 mm, and the demand in 2016 will exceed 100 million mm.
However, due to the rapid decline in prices, the scale of China's LED sapphire market in 2015 was only 1.52 billion yuan, down 11% year-on-year.
"At present, the price of sapphire substrates is still low. Large manufacturers may be near the cost line, and the price of small factories can't match the cost." The sales director of the sapphire company, who asked not to be named, told the new materials online, even in 2016. In the first half of the year, the profits of sapphire companies are still very low.
Sapphire giant Dongjing Electronics' 2016 semi-annual report showed that its LED sapphire business gross margin was -14.80%, down 21.99% from the same period last year. This means that even in the first half of 2015, the gross profit margin of Dongjing Electronic Sapphire business was only 7%.
Domestic sapphire production and sales of the first "leading boss" Orient in the first half of 2016, the gross profit margin of sapphire business has only reached 0.68%, compared with the same period last year, a decline of 31.04%.
Expanding the new high-margin application area has become the only way for sapphire companies, and consumer electronics, especially the mobile phone field, has become the "new blue sea" in the eyes of sapphire companies.
A new tug-of-war is unfolding.

Screen tug
Sapphire is a single crystal of alumina (α-Al2O3), also known as corundum. The sapphire crystal is chemically stable, generally insoluble in water, free from acid and bismuth corrosion, and has a high crystal hardness. Hardness grade 9, second only to the hardest diamond. It has good light transmission, thermal conductivity and electrical insulation, good mechanical and mechanical properties, and has the characteristics of wear resistance and wind erosion resistance. Its unique lattice structure, excellent mechanical properties, and good thermal properties make sapphire crystals the most ideal substrate materials for LEDs, large integrated circuits such as SOI and SOS.
Since the Apple iPhone 5 introduced sapphire into the lens protection cover, and then the iPhone5S used sapphire for the home button, the prospects for iWatch and mobile phone protection glass have greatly changed the supply and demand structure of the sapphire industry.
Sapphire window
Apple used to use sapphire as a mobile phone screen on the iPhone6, and at the end of 2013, signed a $576 million sapphire crystal order with GTAT. The market is also constantly transmitting news that Apple's next-generation iPhone6 ​​will use sapphire on the screen cover.
In the end, however, the iPhone6 ​​and iPhone6plus did not use the sapphire screen as expected, and its manufacturer GTAT went bankruptcy due to debt.
"Although the US sapphire supplier GTAT has fallen, the application of sapphire materials in smart terminals is the trend of the times." Tian Yue shares market director Guo Yuebo said that Tiantong shares have core competitiveness in this field and continue to be optimistic about the future sapphire business to enhance the company's overall profitability. Positive role.
In 2015, sapphire finally appeared on Apple's iWatch. Obviously, Apple did not give up the idea of ​​using sapphire materials on its electronic products.
"The market size of LED sapphire substrates has been basically seen, but the mobile phone screen is a new blue ocean. The potential for future development is very large. The capacity of the mobile phone market will reach 7 or 8 times that of the LED industry." A sapphire-related listed company Dong Mi said that more than 70% of the sapphire on the market is now used for LED substrates, and the mobile phone market is very small; once the sapphire mobile phone screen is applied, the ratio is likely to be reversed.
Zuo Hongbo, chairman and general manager of Orient Optoelectronics, is also very optimistic about the huge application prospects of sapphire crystal materials in the field of consumer electronics. “The most critical issue at the moment is cost and related technical issues. Once these problems are resolved, the capacity of this market is considerable.”
Domestic related mobile phone companies are also constantly trying to apply sapphire on mobile phone screens, and many products have been launched.
In September 2015, LeTV introduced the sapphire version of Le Max, which uses a 6.33-inch capacitive screen with a resolution of 2560×1440 pixels and a Quad HD level. The display is very sapphire.
The James R12 phone also features a 5.85-inch sapphire screen.
Huawei, the leading mobile phone company in China, is not outdone, launching the Huawei P7 sapphire version, which is nearly double the price of the Huawei P7 regular version. Huawei P7 Sapphire Collector's Edition is mainly replaced by rose gold, the back shell becomes ceramic material, and the glass on the screen surface is replaced with sapphire.
"At present, mobile phone companies mainly launch sapphire screens in some limited editions or so-called collector's editions. It is still too early to be used in large-area applications." A designer of a well-known domestic mobile phone manufacturer told new materials online, from cost and performance. In terms of aspect, sapphire has high hardness and corrosion resistance, but there are weaknesses in which the cost is high and the resistance to falling is not strong.
Cost and technology have become the roadblock for sapphire in the consumer electronics sector from small screens to big screens.

Ludmila Zubova, director of Monocrystal Marketing, the world's largest sapphire company, has pointed out that the sapphire industry is not mature enough to be used in LED and smartphone-related applications. However, how consumer electronics drives the development of the sapphire industry requires the entire industry. Propose some innovative solutions to meet the needs of consumers. “In terms of the polished sapphire product market, the current product does not meet market expectations.”
This also shows the embarrassing situation of sapphire in large-screen applications in consumer electronics such as mobile phones.
"Currently, mainstream mobile phones use Corning's Gorilla Glass. If sapphire is used, the cost of the screen alone will be ten times higher than that of the glass." The chairman of Guangdong Saiyu said that the cost of the sapphire mobile phone cover is generally 350 yuan. Because equipment and accessories are more expensive.
According to the new materials online, the price of each gorilla glass display produced by Corning is about three dollars. An artificial sapphire display of the same size would be ten times more expensive, about $30. This is just the cost of glass, and if you want to integrate it perfectly on your phone, the overall cost will increase to $100-120.
In this regard, Zhai Zhifeng believes that in the sapphire mobile phone cover market, Celluloid has basically contacted most mobile phone manufacturers, and mobile phone manufacturers are mainly concerned with the price of sapphire mobile phone cover. If the monthly shipment of sapphire mobile phone cover reaches 100,000 pieces, the cost per piece can exceed 200 yuan.
"Based on the layout of the existing market and the global production capacity of sapphire, it is expected that the sapphire mobile phone cover will be popularized in 2017." Qi Zhifeng said.
Zhou Qunfei, chairman and general manager of Lansi Technology, also said that as the production technology of sapphire materials increases and the scale of production expands, the cost will further decline, and it may be widely used in the protection screens of consumer electronic products in the future.
In June 2015, Lansi Technology disclosed the non-public offering plan. According to the issuance report, the company issued 538.409 million shares to Penghua Asset Management, Caitong Fund Management Co., Ltd. and Ping An Dahua Fund Management Co., Ltd. at a price of 58.84 yuan per share, raising a total of 3.168 billion yuan to invest in “sapphire production and Intelligent Terminal Application Project" and "3D Curved Glass Production Project".
As GF Securities pointed out in a research report, the application of sapphire in consumer electronics has opened up a new market space for LED applications in the sapphire industry. In the future, the application of sapphire in consumer electronics will gradually evolve from “small screen”. Extend to the "big screen", that is, from the smaller area of ​​the current camera, Home button, etc., to the larger area of ​​the watch dial and even the screen of the mobile phone gradually developed. [New Materials Online / Zhao Hui]

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I.D.

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Working Pressure

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Bursting Pressure

(Bar   /  Mpa    /  Psi)

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25

13upto25

1.3upto2.5

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1-1/4``

32

8upto25

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350upto1090

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38

8upto25

0.8upto2.5

120upto365

24upto75

2.4upto7.5

350upto1090

1-3/4``

45

8upto25

0.8upto2.5

120upto365

24upto75

2.4upto7.5

350upto1090

2``

52

8upto25

0.8upto2.5

120upto365

24upto75

2.4upto7.5

350upto1090

2-1/2``

64

8upto25

0.8upto2.5

120upto365

24upto75

2.4upto7.5

350upto1090

2-3/4`

70

8upto25

0.8upto2.5

120upto365

24upto75

2.4upto7.5

350upto1090

3``

75

8upto25

0.8upto2.5

120upto365

24upto75

2.4upto7.5

350upto1090

4``

102

8upto16

0.8upto1.6

120upto235

24upto48

2.4upto7.5

350upto700

5``

127

8upto13

0.8upto1.3

120upto190

24upto39

2.4upto3.9

350upto570

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152

8upto13

0.8upto1.3

120upto190

24upto39

2.4upto3.9

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